Fertilizer off-take during 4M2011 down 4%

LAHORE: Fertilizer numbers for the month of April 2011 has been released by NFDC showing a 4% decline in offtake to 2.3mn tons compared to similar period last year. The decline is primarily due to lower availability of urea which accounts for 75% of total offtake as gas curtailment restricted local fertilizer production (down 9%) and delay in imported fertilizer (imports down 10%). Beside lower availability, increase in fertilizer prices by 40% (both Dap and Urea) also stood as a contributing factor in this decline. During 2011YTD, urea offtake is down 8% to 1.7mn tons while DAP offtake is down by 7% to 215k tons.

Only in the month of April 2011, total offtake stood at 640k tons, up 15%YoY while up 17% on MoM basis. Higher offtake in April 2011 compared to preceding month (March 2011) is primarily due to pre buying ahead of Kharif season. During April 2011, urea offtake increased by 16% MoM to 486k tons while DAP sales improved by 68% MoM to 55k tons.

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